The Swiss luxury group said overall sales dipped 1.0% to €5.27 billion in its first quarter that ended June 30 thanks to growth in the Americas, Japan and Europe.

But sales in the Asia Pacific region excluding Japan – Richemont’s top sales area – fell by 19% to €1.8 billion, and by 27% in China, Hong Kong and Macau.

“The decline reflected both the low level of consumer confidence and the strong comparatives ranging from double-digit growth in the mainland to triple digits in Hong Kong and Macau over the prior-year period,” the company said in a statement.

Data released yesterday showed the Chinese economy’s growth slowed to 4.7% in the latest quarter that ended June 30, while retail sales growth dropped to 2% in June.

China has become a key market for luxury firms in recent years thanks not only to its rising ranks of millionaires but also the swelling middle class.

But a property market crisis and slowing overall economic growth has chilled luxury spending.

Burberry switched chief executives yesterday as it seeks to stem ‘disappointing’ sales, including a 21% drop in comparable stores sales in mainland China last quarter.

Meanwhile Swiss watch group Swatch, which owns a number of luxury brands including Omega, reported a “sharp drop in demand for luxury goods in China”.

Richemont’s quarterly performance was carried by its main jewellery division, which saw its growth edge 2% higher, while sales by its specialist watchmakers fell 14%.

Japan posted the largest percentage gain in sales, soaring 42% to €603 million.

Sales rose by 11% in the Americas to €1.2 billion and added 4% in Europe to €1.2 billion.